Amazon leases another 20 freighters, this time from Atlas Air

By: Transglobal Express

Date:06/05/2016 15:25

Category: Amazon

Amazon has leased an additional 20 freighters to add to its growing fleet. After leasing around 20 Boeing 767s from the Air Transport Services Group (ATSG), Amazon has doubled its fleet size with further planes from Atlas Air.

The agreement involves crew, maintenance and insurance (CMI) leases for the 20 aircraft from Atlas Air, Inc, a subsidiary of Atlas Air Worldwide (AAWW), which will last seven years with extension provisions for up to 10 years.

The deal also involves dry leasing (leasing of aircraft without crew) by AWW’s Titan Aviation leasing unit, again for a duration of 10 years, and warrants to acquire up to 20% of AAWW’s common shares at a price of $37.50 per share over five years.

Sales were up 28% for Amazon in the first quarter, and the company says it needs more air freight capacity to meet demands.